December 11, 2024

Biden Plan to Build AI Data Centers Could Hike Local Energy Bills

WASHINGTON - President Joe Biden's administration is considering using the Defense Production Act to fast-track the construction of artificial intelligence data centers, according to reports. If the proposal were to move forward, data centers could get priority access to power supplies-a move that could raise power rates for consumers across the country.

According to a recent study, if expansion stays at its current rates, the total public health burden of U.S. data centers could cost the economy more than $20 billion per year, double that of U.S. coal-based steelmaking and comparable to that of on-road emissions of California.

In response, Tyson Slocum, director of Public Citizen's Energy Program,issued the following statement:

"The administration's reported 'fast-track' proposal for data centers is on the wrong track.

"The barrier to data center development is not permitting, it is the immense challenge of finding adequate power supply that doesn't shift costs to other consumers or strain the grid. Any federal action that grants AI data centers preferences in power supply queues may erode reliability of the bulk power market and threaten household consumers with higher rates.

"If anything, the federal government should be mandating stronger efficiency and energy/water use standards for AI data centers-not less. A data center-caused surge in electricity demand threatens to worsen climate change and injure local environments, and a condition of creating these new data centers should be supplying entirely new, clean energy to offset the increased demand.

"Permitting for these facilities should be entirely made by local zoning ordinance and procedures, and the federal government shouldn't swoop in to overrule local authority."

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